United Arab Emirates: PMI in February increases from January's multi-year low
March 4, 2016
The Emirates NDB Purchasing Managers’ Index (PMI) rose from January’s multi-year low of 52.7 to 53.1 in February. As a result, the PMI remains above the 50-threshold that separates expansion from contraction in the non-oil producing private sector.
In February, the acceleration was due to faster growth in output, new orders and employment. As inflationary pressures remain subdued, firms cut charges to the greatest extent since March 2010 to secure new clients. Emirates NBD analysts added that, “the improvement in the Emirates NBD UAE PMI last month is encouraging, particularly against a backdrop of low oil prices, global growth concerns and a strong USD. However, the rate of growth in the non-oil private sector remains much weaker than a year ago, when the headline PMI registered 58.1. We expect the environment over the coming weeks to remain challenging, with several global factors weighing on sentiment and activity.”
Author: Dirina Mançellari, Senior Economist